• Scientific Integrity
• Global Warming
• Clean Vehicles
• Clean Energy
• Nuclear Power
• Nuclear Weapons & Global Security
• Food and Agriculture

Vol. 6 | No. 2

Spring 2004

Close to Home Shareholders Unite!

Are your environmental values reflected in your stock portfolio? Reconciling the two is easier than you may think.

As a shareholder, you own a piece of the company in which you invest, and you have a say in how it is managed. Shareholder activism has gained momentum over the past few years, as pressure grows for corporations to be environmentally responsible. Companies are learning that their impact on the environment also affects their bottom line, and those that don't commit to improved standards may lose their competitive advantage and even be held liable for their pollution.

There are several ways to make your money speak for your ideals. The most straightforward approach is to invest in companies that are concerned about the environment, such as a company that develops renewable energy technologies or is committed to reducing its carbon emissions. "Green" mutual funds are also available, and you can invest in them directly or through your company's retirement plan; ask your employer to add these to your plan if none are available.

If you own stock in a company whose environmental record is subpar, you can use your position as an investor to push for improved environmental practices. Write a letter to the CEO asking him or her to commit to better pollution regulations or efficiency standards,pointing out that these commitments will help improve the company's bottom line.

Members of CERES, a coalition of investment funds and environmental groups (including UCS), have filed shareholder resolutions with companies that emit large amounts of heat-trapping gases. Targeted companies include Ford, General Motors, American Electric Power, and Exxon Mobil; if you own stock in one or more, consider cosponsoring this shareholder resolution. See www.ceres.org for more information.

Shareholders can also vote on resolutions—which may address the environment, human rights, and financial reporting—at the company's annual meeting. Ballots are sent in the mail several weeks in advance, and if you can't attend in person, you can mail or phone in your vote. If you don't vote, management casts your vote however it sees fit—often against stricter environmental standards—so don't throw away your ballot! Mutual funds are different in that they are invested across the market, and the fund's manager casts shareholders' votes. Call your fund manager and ask how he or she intends to vote, urging a vote in favor of better environmental practices.

If you want to have greater involvement with corporate decision making, you can sign on as a cosponsor to shareholder resolutions that address your environmental concerns. You must own a minimum of $1,000 in shares and hold them for at least one year from the annual filing date (usually September or October). To find out which resolutions have been filed, contact the company. If you wish to draft your own resolution, it is best to join forces with an organization that works with institutional investors to ensure your resolution is properly prepared.

Finally, if a company refuses to commit to socially responsible practices despite strong support from shareholders, consider selling your shares and reinvesting somewhere else.Let the company know why a different organization deserves your investment; even though your divestment may not have an effect upon a large corporation, it can be a powerful statement if other investors follow suit.

To learn more about socially responsible investing (SRI) and view a list of SRI funds, visit the Social Investment Forum website.

Also in this issue of Earthwise:

Dialogue
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from regular tires?

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